Meaning
UPI tokenization replaces sensitive card or account details with a unique digital token for processing payments. This avoids sharing actual banking information during transactions.
Examples
- Linking a credit card for UPI payments using a token.
- Tokenizing debit cards for app-based recurring payments.
Importance
- Enhances security by reducing data exposure.
- Simplifies recurring payments without sharing sensitive info.
- Prevents fraud during digital transactions.
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